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Governor issues Cost Containment memo — freezes step-increments

Other issues include no OT, no new positions, no sick leave advances
joyetter@samoanews.com

Governor Lolo Matalasi Moliga has once again frozen the annual increment which was reinstated in October 2015 after it was first suspended when the Lolo and Lemanu Administration first took office in 2013.

The suspension of the step-increments was announced in the Cost Containment Measure (CCM) general memorandum last week, dated January 25, 2017 which supersedes the previous CCM memo that was issued in 2013.

The governor points out in his memo that “until the financial health of the American Samoa Government is improved, measured by full liquidation of outstanding obligations, court decreed legal liabilities and maintaining financial solvency evidences by keeping its obligations current, all annual increments are hereby frozen.”

The step-increment suspension was one of the issues that led government employees to complain to their respective representatives and senators.

And, when the current administration reinstated the increments, then Department of Human Resources Director Le’i Sonny Thompson pointed out that as per ASAC 4.0409(a), while “every employee is entitled to an annual step-increase at the beginning of the pay period immediately following his or her service year preceding such increase,” there is an employee performance evaluation involved and if the evaluation “is satisfactory or better,” the employee will then receive a step-increment.

The statute points out however “if the employee performance evaluation is unsatisfactory, a written justification on the same must be submitted to the Department of Human Resources 60 days prior to the date the increment is due.

“The compensation of an employee denied an increment because of substandard performance in his or her job in the service year preceding may subsequently be increased as of the date of his or her performance has been brought up to standard and has so continued for a 3-month period. His or Her increment anniversary date will be adjusted accordingly.” 

GOVERNMENT VEHICLES

Other issues the governor noted in his latest CCM include the deadline for all of the dark tints on the windows to be stripped from government vehicles by February 28, 2017; and Directors and acting Directors while authorized to take the assigned vehicles home, it is to be used for official government business only and not personal transportation of spouses, children and family members.

In the past directors and deputy directors, as well as ASG employees have been seen dropping off their children in the morning and picking them up after school. The governor also made it clear that the vehicles belonging to the Legislative and Judiciary Branch are exempted from these vehicle policies.

Lolo further reemphasized that the directors or acting directors will bear the burden of justifying the need for the 24-hour pass authorization.

The governor  also put it to his cabinet members that they “will bear the responsibility for any incurred violations given their overall duty to promote clear awareness regarding the existence of this policy.”

He pointed out that the driver of the government vehicle will bear the financial cost of repairing the vehicle or the full replacement value based on the blue book value if the vehicle in the accident is declared a total loss.

“Moreover, the employee will also be held responsible for judgments resulting form any personal injury lawsuits filed against ASG resulting from the accident. If employee is exonerated by court decree supported by the policy investigative report, the employee will be absolved from any financial liability connected with the accident,” Lolo said.

OTHER ISSUES

Lolo in his memo noted that the cost of Human Resources constitutes an average of 85% of total operating costs of the American Samoa Government; and “it behooves all of us to adopt vigilance in exercising the best practices to effectively and efficiently manage this object class.”

He told the directors to thoroughly consider that no new position is to be created unless funding is identified in the approved budget.

“Unbudegted positions are to be terminated forthwith or ensure that funding is identified to fund the position.” Also there will be no new personal service contracts, irrespective of type, duration of funding source, established unless approved by the government based on need justification for the existence of the contract.

The governor continued that all positions which are not properly aligned to the agency’s organization chart, legal mandate and distribution of responsibilities in the order of importance based on the agency’s mandate will be realigned to comply with merit standard of the Career Service Personnel System of ASG.

For overtime, Lolo said none would be authorized to be incurred for any reason. Agencies with 24/7 services will ensure that appropriate shifts are established guaranteeing that no overtime is incurred. “This administration is committed to full compliance with the stipulation of the Fair Labor Standards Act.”

He also made clear that government employees who are at grade 13 or higher are salaried employees and they are not entitled to over time, but they may accumulate compensatory time and of course it has to be approved by the governor.

Lolo also noted that it’s healthy to require employees to take annual leave and take vacations for recuperation and therefor requires all government employees to take their vacation so long as the service quality provided by the agency will not be compromised.

For sick absences, the governor said it’s “understandable that employees do get sick from time to time. However a pattern of continual absence due to illness should be addressed with remedial actions implemented to mitigate the problem.”

Lolo added that it’s “becoming a common practice to advance sick leave to a government employee who is ill or caring for a family who is sick without any remaining sick leave.” The governor said that is no longer authorized.